TAG Industrial Watch: August 19, 2023

Over the last month, a sense of calm has come over the financial community, with the possibility of a recession seemingly no longer on the table. Ironically, perhaps the biggest sign of recession (other than falling tax revenues) has gone completely unnoticed. Gross Domestic Income (GDI), adjusted for prices, has declined for two consecutive quarters and sits lower year-over-year as of the most recently reported quarter in Q1 2023. Since records began post WWII, neither has occurred without the economy being in recession. Since GDI sums up all of the income generated from the production of goods and services, it is not only an alternative measurement of the economy, but in theory, supposed to equal the more commonly cited Gross Domestic Product (GDP).

Only once before has GDP and GDI shown contraction and expansion at the same time. In 2007, the YOY change in GDI dropped into negative territory even though GDP continued to move higher. As we all know, the former proved to be the better indicator of things to come and today’s environment looks eerily similar. For industrial investors, the time is now to stagflation-proof your portfolio by selling the logistics-type properties that used to be hot and buying the commodity-related assets that will be.

I N D U S T R I A L   N E W S

US Industrial Production Returns To Growth in July
Industry Week – August 16, 2023
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US Leading Indicators Tumble For 16th Straight Month,
Signals “Economic Activity Like To Decelerate”

ZeroHedge – August 17, 2023
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Smaller Balance CRE Loans May Be The Ticket For Investors
GlobeSt. – August 14, 2023
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Bank-Held CRE Loans Total $3T, With Community
Banks Holding An ‘Outsized’ Share

Bisnow – August 15, 2023
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Trucker Liquidation Expected To Flood
Industrial Market With Properties

CoStar – July 31, 2023
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R E G I O N A L   N E W S

UPS Continues Chicago-Area Expansion
With New Package Centers

Connect CRE – August 7, 2023
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Ackerman & Co. Breaks Ground On 511 KSF
San Antonio Industrial Park

Commercial Property Executive – August 9, 2023
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Does the Midwest Have Enough Workers
For Its Industrial Operations?

GlobeSt. – August 3, 2023
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Kansas City Developer Nabs Tract
Slated For New Industrial Complex

CoStar – July 28, 2023
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Siemens May Open A $133M Plant
In Fort Worth With 715 Jobs

Fort Worth Report – August 15, 2023
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